1. What is House Rent Income Tax?

House Rent Income Tax is the tax levied on income earned from renting out property in India. For Assessment Year 2024-25, it's calculated based on gross rental income minus allowable expenses, multiplied by the applicable tax rate.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Rental\ Income \) — Total income from property rental (INR)
• \( Allowable\ Expenses \) — Deductible expenses like maintenance, repairs, etc. (INR)
• \( Tax\ Rate \) — Applicable tax rate (percentage)

Explanation: The formula calculates taxable income by subtracting allowable expenses from gross rental income, then applies the tax rate to determine the tax liability.

3. Importance of House Rent Income Tax Calculation

Details: Accurate tax calculation is crucial for compliance with Indian tax laws, avoiding penalties, and proper financial planning for property owners.

4. Using the Calculator

Tips: Enter gross rental income and allowable expenses in INR, and the applicable tax rate as a percentage. All values must be valid (non-negative numbers, tax rate between 0-100%).

5. Frequently Asked Questions (FAQ)

Q1: What expenses are allowable deductions?
A: Standard deduction (30% of NAV), municipal taxes, interest on home loan, repairs, insurance premiums, etc.

Q2: What are the tax rates for AY 2024-25?
A: Rates vary based on total income and tax slab. Consult current income tax slabs for accurate rates.

Q3: Is TDS applicable on house rent income?
A: If annual rent exceeds ₹2.4 lakh, tenant must deduct TDS @ 10% under Section 194-IB.

Q4: How is rental income taxed for multiple properties?
A: Income from all properties is aggregated and taxed as a single income source under "Income from House Property."

Q5: What about vacant property?
A: Even if vacant, notional rent may be taxable if property is deemed to be let out.